Shall we fear a Chinese real estate bubble burst similar to Japan's in 1989 ?

This would have dramatic consequences not just for China, but for the whole world. The Chinese economy is going to make up one fourth of the global economic growth by the end of 2011. Chinese real estate prices have tripled in the last five years, mostly fuelled by cheap government loans and overconfidence arising from strong exports, just like in Japan in the 1970's and 80's. A collapse of the Chinese property market would have an immediate impact on the rest of the world, triggering a deep recession in the USA due to the huge investment of American companies in China. This will surely beat the subprime crisis or the current public debt crisis of tiny Greece.

Here is an in-depth review from the Time. Feel free to discuss it here.